The Securities Appellate Tribunal (SAT), Mumbai issued an order dated March 13, 2026 in Appeal No. 402 of 2023 filed by Capitalaim Financial Advisory Pvt. Ltd. and its Director, Abhijeet Bajpai, against a SEBI order dated January 9, 2023. SEBI’s Whole Time Member had debarred the appellants from accessing the securities market for five years and directed them to resolve investor complaints on the SCORES platform. The appeal was heard and reserved for orders on February 24, 2026.

Key Points

• Capitalaim Financial Advisory Pvt. Ltd. is a SEBI-registered Investment Adviser since 2014, based in Indore, Madhya Pradesh.
• SEBI conducted an inspection of Capitalaim for the period November 2–8, 2019, which revealed multiple violations.
• Violations found: failure to carry out risk profiling and suitability assessment for clients, charging unreasonable fees, and defrauding clients.
• SEBI issued an interim order cum Show Cause Notice (SCN) restraining the appellants and other noticees from accessing the securities market.
• After hearing the appellants’ replies to the SCN, SEBI passed the impugned order on January 9, 2023, imposing a five-year debarment.
• Appellants have already served approximately 4 years and 5 months of the 5-year debarment period as of the appeal hearing.
• All pending complaints on the SCORES (SEBI Complaints Redress System) platform have been resolved by the appellants.
• Capitalaim ceased taking new clients effective February 2020.
• The appellants requested the Tribunal to consider proportionality and treat the debarment already suffered as sufficient.

Regulatory Changes

No new regulatory changes are introduced by this order. The matter pertains to the application and enforcement of existing regulations:

• SEBI Act, 1992 (Section 15T for appeals to SAT)
• SEBI (Investment Advisers) Regulations, 2013
• SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003

Compliance Requirements

• Investment Advisers must conduct proper risk profiling and suitability assessments for all clients in accordance with SEBI (IA) Regulations, 2013.
• Fees charged to clients must be reasonable and in compliance with applicable SEBI guidelines.
• Registered Investment Advisers must promptly resolve investor complaints filed on the SEBI SCORES platform.
• Any fraudulent or unfair trade practices are prohibited under the SEBI (PFUTP) Regulations, 2003.

Important Dates

• November 2–8, 2019: SEBI inspection of Capitalaim Financial Advisory Pvt. Ltd.
• January 9, 2023: SEBI Whole Time Member passed the impugned order debarring appellants for five years.
• February 2020: Capitalaim stopped accepting new clients.
• February 24, 2026: Appeal heard and reserved for orders by SAT.
• March 13, 2026: SAT order pronounced (this circular/document).

Impact Assessment

This SAT order is primarily relevant to the investment advisory sector and investor protection enforcement. The case highlights SEBI’s scrutiny of registered Investment Advisers for compliance with client-suitability norms and fee transparency. The outcome of the appeal (whether the debarment is reduced, upheld, or modified) could set a precedent for proportionality arguments in similar enforcement matters. For the broader market, the direct impact is low, as this involves a single advisory firm with no listed securities exposure. However, it reinforces SEBI’s stance on protecting retail investors from unscrupulous advisory practices and signals continued regulatory oversight of the Investment Adviser community.